Shockwaves went through the market this week with a big fall on Monday, the market closing down 4%.
Those who kept their cool used this as an opportunity to invest some the cash sitting on the sidelines.
For those who sold, I thank you for the cheap prices.
The market rebounded back for the rest of the week with the market closing around 60 points higher at weeks end.
We still expect the market to be volatile; as the US sells down, companies continue to report reduced profits, China slows, and the Aussie dollar is so low.
What this week showed us is that there are still plenty of buyers waiting to pick up shares on weakness.
Our view short-term is that the market may move higher possible up to 5400 however we expect that the market will at some point retest the lows seen this week.
Keep in mind that the market strongly rebounded when it hit 4900 setting a level of support.
We continue to look for opportunities, focus on income as growth is still some time off given the current economic conditions both in Australia the US and China.